Hi, so I’m 23M and back in May I got into a car accident. I do not believe myself to be at fault, however in her claim statement it’s said that I am. (She claims I ran a red light and hit her which I did not) I thought everything got finally settled a few weeks ago however I just received an email two nights ago, by my insurance, of her demand for her medical expenses to be paid. I believe that it’s a “policy limit demand.” (I’m unsure if that’s the correct name, I am unfamiliar with most legal paperwork’s and such)

In this demand, she details her injuries that were “caused by the accident” and the expenses of them totaling to about $70k and demanding a “one-time lump settlement of this claim for $1,000,000.” The letter then continues on to say “Should your insured’s policy be less than $1,000,000 dollars per person.... our client will accept the policy limit of your insured’s policy under the same terms....”

My policy limit for medical expenses under liability is $30,000 I believe.

My main concern is, is she expecting me to pay off the remaining difference of the medical bills out of pocket? Aka a roughly $40k difference. Is she suing me for a million dollars? Or what exactly does this mean. I have no money to just be throwing away like that and was just about to start having to make payments for school this upcoming semester. This whole situation has me very scared and concerned for the rest of my future. I am very unfamiliar with legalities and this is my first car accident so any help or advice would be greatly appreciated.